Abstract

There is a gap between the performance of the construction company as a business and the performance of its construction projects. The research addresses this gap through how senior managers construct business performance in medium-sized construction companies which are believed to be working at both company and project levels.

Existing research identified determinants of business performance as locality, type of work and size of business, as well as management approach. Therefore this research is limited to the English Midlands to ensure commonality in the working conditions of the construction companies investigated and to understand other factors useful in creating business performance.

An interpretive research method was chosen because the construction industry operates substantively through the actions and relationships of individuals. A series of in-depth semi-structured interviews was conducted with senior managers in two stages. An analysis based on the content of the interview transcripts was used to develop the understanding of creation of business performance in a construction company.

The findings determined that business performance was a fluid concept in practice which is not handled well by academic theory. Medium-sized construction companies have a nature which operates through non-formal "direct managerial contact" and wider integration through a proactive company-wide drive for business development and business improvement. This means that effectively there is no gap between company and project. The company's business processes are flexible to address the market and client's changing requirements. However the project processes are more fixed to enable effective delivery. Thus business performance is created as an amalgamation of knowledge, experience, decisions and relationships that operate differently depending on market and operational context to deliver long-term sustainability to the company.